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Wage and Hour Division (WHD)

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Archived News Release — Caution: Information may be out of date.

Press Releases

Date:  October 6, 2014

Contact:  Leo F. Kay or Jose A. Carnevali

Phone:  415-625-2630 or 415-625-2631

U.S. Department of Labor
Wage and Hour Division
Release Number: 14-1806-SAN



Sacramento, California, residential care homes ordered to pay $44,669 for labor violations

22 caregivers for adults with developmental disabilities to receive back wages, damages

SACRAMENTO, Calif. -- Chief U.S. District Judge Morrison C. England of the Eastern District of California has ordered Jaime Gacilan and his three Sacramento-based residential care facilities to pay 22 workers a total of $44,669 in back wages and liquidated damages. The order resolves a lawsuit filed by the U.S. Department of Labor alleging violations of the Fair Labor Standards Act at Ocampo Gacilan Home Inc., Country Elegance Inc. and Bilby Home Inc.

An investigation by the department’s Wage and Hour Division found that the 24-hour care provider for adults with developmental disabilities at the three residential locations were engaged in improper pay and record-keeping practices that resulted in employees not being paid minimum wage and overtime compensation, as required by the FLSA.

“This judgment sends a stern message to an industry widely known for severely curtailing employee’s wage rights under the law,” said Richard Newton, district director for the Wage and Hour Division in Sacramento. “We are determined to stop the systemic violations seen in this industry. These dedicated and often vulnerable workers provide essential services and care for adults with developmental disabilities, who themselves deserve the best, and that starts with ensuring workers receive a fair day’s pay for a fair day’s work.”

The department’s lawsuit alleged that Gacilan and his three residential care homes failed to pay workers the federal minimum wage because they did not pay for all hours worked or for mandatory training. The business, which provides services at facilities rather than in a family’s home, also failed to pay required overtime at time and one-half the workers’ regular hourly rates for hours worked beyond 40 in a workweek.

The investigation determined that 22 workers were due $31,207 in unpaid overtime and minimum wages. The court has ordered defendants to pay the workers an additional $13,462 in liquidated damages. The department’s regional solicitor in San Francisco litigated the case.

The judgment requires Gacilan to take a number of proactive measures to comply with the FLSA. These measures include a requirement for him to visit each home and be present while a description of this lawsuit and judgment is read to employees in English, Spanish and Tagalog. It also requires Gacilan to provide a notice on each employee’s work hours summary for every pay period.

The FLSA requires that covered employees be paid at least the minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Sacramento District Office at 916-978-6123. Information also is available at http://www.dol.gov/whd/.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.